OSFI to Recover Out-of-Pocket Costs from Foreign Bank Branch Applicants

Effective August 1, 2001, OSFI will charge foreign bank branch applicants for the out-of-pocket costs of visits to the head office of the foreign institution and home country regulators/supervisors in respect of applications received after July 31, 2001.

At present, a foreign bank is required to submit a non-refundable fee designed to recover OSFI’s usual in-house costs of processing a foreign bank branch application. However, to complete its review of these applications, OSFI has found it necessary to visit the head office of the foreign institution and/or the home country regulators/supervisors. The visits allow OSFI to discuss the applicant’s risk management systems, operational control systems and its financial condition as well as the home country’s regulatory and/or supervisory systems.

OSFI will recover these out-of-pocket costs direct from the applicant and not from all members of the deposit-taking industry under OSFI’s general assessment regime. Subsection 23.1(2) of the Office of the Superintendent of Financial Institutions Act gives the Superintendent the authority to assess against a person a prescribed charge (fee) and applicable disbursements for any service provided by or on behalf of the Superintendent for the person’s benefit or for the benefit of a group of persons of which the person is a member.

Any inquiries should be directed to Mr. Jim Dolan, Manager, Foreign Bank Branch Supervision Division at (613) 990-6032 or e-mail jdolan@osfi-bsif.gc.ca.